DLF, the country’s largest realty developer, is likely to complete the sale of DT cinemas to PVR Ltd in a fortnight. There will, however, be changes in the terms of the Rs 60-crore stock-cum-cash deal, said an official.
“They (PVR) are saying it will be completed in 10-15 days,” said an official of the real estate company.
The terms are being reworked to account for the sharp increase in the share price of PVR since the deal was announced in November last year. There were media reports on Monday saying PVR has called off the deal due to disagreement on valuation. However, PVR clarified the deal was not off.
“The deal is not consummated yet because certain conditions are not met. We will make an announcement once it is finalised,” PVR’s chief financial officer Nitin Sood told Dow Jones.
In November, PVR said it would buy the DLF group’s multiplexes for Rs 60 crore. The deal involved PVR issuing 2.6 million of its shares — then valued at Rs 165 — worth Rs 40 crore and paying Rs 20 crore in cash.
PVR’s shares closed at Rs 179.50 at the Bombay Stock exchange on Monday, about nine per cent higher than the price at which the deal was struck. Ten days earlier, PVR shares touched a 52-week high of Rs 203.95, almost 24 per cent higher than the deal price.
